Shinhan Asset Management, Default Option Fund Series Assets Under Management Triple Since Early This Year

by Ryu Hyunseok

Pubilshed 13 Aug.2024 09:01(KST)

Shinhan Asset Management announced on the 13th that the assets under management of its default option fund series (Shinhan Ma-eum Pyeonhan TDF, Shinhan Big Cycle Asset Allocation Fund, Shinhan Balance Pro Fund) have increased more than threefold since the beginning of the year.

As of the 8th of this month, the assets under management of the default option fund series managed by Shinhan Asset Management amounted to 132.8 billion KRW, a 227% increase compared to the 40.5 billion KRW at the beginning of the year. This showed the fastest growth among asset managers operating default option funds with assets exceeding 100 billion KRW.

Looking at the default option fund lineup, it includes the representative pension fund ‘Shinhan Ma-eum Pyeonhan TDF’, the industry’s lowest-fee asset allocation product using US stocks and domestic bonds, ‘Shinhan Big Cycle Asset Allocation Fund’, and ‘Shinhan Balance Pro Fund’, which combines Shinhan Investment Corp.’s investment portfolio advisory service.

Among these, the product that contributed most to the increase in default option assets under custody was the ‘Shinhan Ma-eum Pyeonhan TDF’ series. The average 1-year vintage return of the Shinhan Ma-eum Pyeonhan TDFs (2030, 2035, 2040, 2050) included in the default option was 12.26%, surpassing the average return of default option funds (10.55%) over the same period. Demonstrating excellent management performance, it recorded an inflow of 77.1 billion KRW since the beginning of the year.

In addition to Target Date Funds (TDF), Shinhan Asset Management’s ‘Shinhan Balance Pro Aggressive Fund’, which allocates risky and safe assets according to the investor’s pre-determined risk profile, ranked 2nd overall with a 1-year return of 16.76% among balanced funds (BF), driving strong returns. It is evaluated as the most suitable product for the characteristics of default options, which require providing products that match investors’ risk preferences along with improving portfolio returns.

The ‘Shinhan Big Cycle Asset Allocation Fund’, launched in December last year, was recognized for its management capability despite its short operating period and was newly included in Hana Bank’s default option low-risk portfolio in May this year, aiming to enhance retirement pension returns.

Ryu Ji-eun, Head of DT/Marketing Planning at Shinhan Asset Management, said, “There are concerns that principal-guaranteed products will not even keep up with inflation in the upcoming interest rate cut cycle,” adding, “It is important to choose efficient investment products that consider both stability and growth.” She continued, “We will provide pension investors with a diverse product lineup and efficient default option investment solutions by launching products such as the Shinhan Ma-eum Pyeonhan TDF 2060 vintage and Shinhan Didim Global EMP Fund for those in their 20s and 30s.”